WPI signs deal for former Boys Club

Wednesday

Dec 19, 2012 at 1:00 PMDec 19, 2012 at 10:31 PM

By Nick Kotsopoulos TELEGRAM & GAZETTE STAFF

Worcester Polytechnic Institute has entered into a license agreement with the city that in essence gives it preferred developer status for the acquisition and renovation of the former Lincoln Square Boys Club.

WPI is looking at the vacant, city-owned building as a potential site for its business school and for a new “business incubator” for start-up companies, the latter being a concept that City Councilor Frederick C. Rushton has actively championed in recent years.

The Boys Club building had been slated for redevelopment into housing, but those plans ran aground because the project was no longer financially feasible for the developer.

Under the agreement, City Manager Michael V. O'Brien said WPI will be given through May 31 to conduct extensive due diligence before deciding whether it wants to buy the property.

During that period, he said, the city has agreed not to market or advertise the property for sale.

Mr. O'Brien said WPI's technical support team, made up of appraisers, architects, engineers, contractors and other consultants, will have a right to enter the property during the term of the agreement.

He said they will be inspecting, surveying, measuring and photographing the property, as well as conducting some excavation work and test borings.

The manager said the age and condition of the building warrant such an extensive effort, and all the work will be done at WPI's expense.

“This news is exciting and sets the stage for the continued revitalization of Lincoln Square in line with our strategy and master plan,” Mr. O'Brien wrote in a report to the City Council informing it of the agreement. “There is, however, much work and due diligence to determine if these goals can be achieved. The executed license agreement and the planned due diligence are the first steps of many.”

The 48,000-square-foot Lincoln Square Boys Club building, which opened in 1930, was part of the former Worcester Vocational School complex, situated north of Lincoln Square. The building became vacant five years ago when the city opened the new Worcester Technical High School. Since then, the city and the Worcester Business Development Corp., the developer of nearby Gateway Park, have been trying to attract developers for the former vocational school buildings.

In 2010, a Quincy-based company was designated by the city as the preferred developer of the property. Acorn Management, which had agreed to pay $675,000 for the property, intended to redevelop the building into 28 market-rate housing units.

Those development plans were subsequently approved by the Planning Board in October 2010.

But the plans ran into problems because the developer needed historic tax credits, which required the approval of the National Park Service, to make the project financially feasible.

Because of the age and condition of the building, as well as current building codes, Mr. O'Brien said the cost of redevelopment was much higher that what market-rate apartment leases would be able to recoup.

Meanwhile, the developer's application for historic tax credits ran into problems because the National Park Service stated in its review that certain interior spaces, such as the gymnasium, would need to be preserved.

Mr. O'Brien said that requirement reduced the available space for apartments within the building and, as a result, reduced the number of market-rate units that would be available. He said that inevitably prevented the proposal from moving forward.

Recognizing the importance of the Boys Club building to Lincoln Square, Mr. O'Brien said he turned to WPI and the Massachusetts College of Pharmacy and Health Sciences to determine if it could serve a use in their continued growth in that area.

He said he began with WPI and its president, Dennis Berkey, to review options at the site.

“Upon WPI's review, Dr. Berkey, his staff and faculty believe this location and the command presence it has on Lincoln Square would be a fit for WPI's world-class business school and for a new business incubator proposal,” Mr. O'Brien said.

Mr. Rushton, who chairs the City Council Economic Development Committee, said the addition of another business incubator for start-up companies at the Lincoln Square Boys Club would “fit perfectly” into Worcester's vision.He said WPI's involvement with a business incubator, along the lines of what already exists in the city for biotechnology and life sciences, will help solidify Worcester's image as “small business central.”

“Companies start with good ideas that are then allowed to hatch and grow,” Mr. Rushton said. “There are many more good ideas waiting to hatch in this city and having a facility like this would show that Worcester is small business central, where good ideas are put into action.

“This is a landmark area and a gateway into the city,” he added. “With the help of WPI, this will put the stamp of our vision in lights.”